Community post
Haejin's Steemit Strategy
I had a realization the other day about what exactly haejin is doing on Steem. I think most people understand that he is milking Steem for all it is worth, but I didn't understand exactly how he was doing it until now.
Haejin is gaming the upvote system.
If you have been on Steemit much you may have realized that you only get 10 full upvotes a day. Each time you use one it slightly decreases the power of your vote. So to maximize your vote you should vote at full exactly every 2.4 hours. Ok, so if you want to use that vote on yourself, that means you need to post 10 times everyday spaced by about 2.4 hours. Now if you go to haejin's page you will see that indeed there are exactly 10 posts everyday going back many months. Many of these have little content, but that doesn't matter if your goal is to game Steem. They aren't always spaced by 2.4 hours, but they aren't bunched up either.
So, how much is he squeezing out of Steem? This is where things get dicey. He needs to have a huge stake in Steem in order to reap rewards from it. He needed to invest a lot of money into Steem to get money out. Many people come on Steem with no investment at all and could be said to be mooching off the system even more because they have an effectively infinite return on invested capital. However, using his method what would someone see as a return?
Using @penguinpablo 's upvote calculator, 10,000 steem power gives you a 1.42 which means you need $14,200 powered up to reap that reward. This places every self vote as a 0.006% return on your investment. Doesn't seem like much, but what if we apply the voting scheme mentioned above? Since you can get rewards exactly one week after earning them, we will assume the reward compounds daily.
Ok, so ten posts a day means .06% daily return. Seven days a week means 0.42% weekly return. At a month, the compounding starts to have an effect giving you 1.82% monthly return. But nobody measures return in weeks or months. What's the yearly return?
24.47%
That's right. By making ten posts a day and upvoting yourself everytime, this is the return on invested capital. Now, there is also inflation which sits around 10% currently, but the amount of steem power increases by the above amount without taking into account the changing price.
This isn't actually a terrible thing. This is the incentive to post content, but the quality of the content is important and haejin's content is of a debatable quality which is why each of his posts is a small flag war.
I hope this was informative. Until next time,
Curtis
Replies (4)
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STOPTo support your work, I also upvoted your post!
So adding something in here... If you post smart then you can actually get 11 upvotes of 100% in a day. You see if haejin had posted all 10 of his posts without voting and then voted them all at once then his voting power would be
0.9810=0.81707280688 or ~81.7%
however
0.9811=0.80073135075 or ~80.0%
since you regenerate ~20% of your voting power per day you would get an extra vote... Now lets calculate the returns if you were to vote 11 times a day instead of 10.
Using your number of $0.85 at 100/100 (100% vote with 100% VP) and using the formula to calculate the sum of geometric series we can get that in one day someone with that amount of SP will get
0.85(1-0.9811)/(1-0.98)=8.46891759313 or around 1.42 and is collecting at 100% powerup (its all steem).
This makes the per anum ROI increase up to 30.9% however this is making the assumption that the value of steem doesn't rise throughout the year.
Currently Haejin has a voting stake of ~340,000 meaning his 100/100 upvote is worth $29.49...
10 Votes: 29.49(1-0.9810)/91-0.98)=269.726 Steem at 29.0% per anum ROI
11 Votes: 29.49(1-0.9811)/91-0.98)=293.822 Steem at 31.5% per anum ROI
And to answer the impending question, yes I am pretty sure he actually does this as he upvotes his own comments.
However, his self voting is chump change compared to what he is getting from ranchoalexo or whatever it is.
psst, the ROI using the 10,000 approximation and the calculation using haejin's current power will be off as the market has changed and none linearity between rewards from day to day. All of this is an approximation.
Also, I am not posting this comment in hostility towards you, I liked how you wrote the post, I just started thinking about it and yeah. I am sorry if it seems like an attack, more than not its me trying to engage... you know, silly engineer has troubles finding ways to engage with people.
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STOPNice, I hadn't realized that. It is chump change compared to what he gets from ranchorelaxo, but no one is sure whether they aren't the same person. In that case the same math applies for his return, I think.